2006-10-09 09:53:04 · 4 answers · asked by Jack K 1 in Business & Finance ➔ Corporations
Preferred shares/stock have different rights and privileges.
Typically they have different voting rights (such as the right to pick a set number of directors) and have preference in payouts either in dividends or when the company is sold.
2006-10-09 10:02:23 · answer #1 · answered by feanor 7 · 0⤊ 0⤋
Preferred stock, first of all, has a hierarchy that places them above Common Stock in the event of a default. Preferred usually pay a higher interest (dividend) and it's guaranteed. If they company is unable to pay the dividend, common stock holders are SOL but preferred stock holders will be made whole once the company can pay. Bond holders come first in the event of a default or bankruptcy. Preferred stock holder can't vote their shares while common stock holders can See the attached for a simple definition.
2006-10-09 17:03:20 · answer #2 · answered by canela 5 · 1⤊ 0⤋
Stocks that are for select members such as the governing board, and they are not shares that can be purchased commonly, AKA common shares
2006-10-09 16:56:00 · answer #3 · answered by LENNON3804 3 · 0⤊ 1⤋
Technology or oil.
2006-10-09 17:00:18 · answer #4 · answered by Anonymous · 0⤊ 1⤋